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Case - Day 2 It is now October 15, 2025. Your Auntie has just won $160 million in the lottery and decides to go on

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Case - Day 2 It is now October 15, 2025. Your Auntie has just won $160 million in the lottery and decides to go on a trip around the world. You offer to drive her to the airport. During the drive to the grport, she tells you the win will allow her to retire, and she wants to know if you want to buy her business. She gives you the password to her computer so you can go and find the current financial information about the company. You haven't been involved in the business since 2021. Once you take a look at the current financial information you realize you need to get caught up. Cavities Candy Lid. has not yet completed their September 30, 2025 year end statements however you were able to find a partially completed adjusted trial balance for that time frame plus a balance sheet for 2024. You know that having current year end financial information will be important. You also know ratios are very important to compare the business operations from year to year. You take a closer look at the notes in the files regarding the partial adjusted trial balance. Your Auntie indicates that all adjustments for year end have been made to the trial balance except the following: 1) The annual interest on the long term loan has not been recorded. 2) The aged accounts receivable schedule has not been completed to determine the allowance for doubtful accounts for the end of September. 3) A final evaluation of inventory still needs to be done. Luckily your Auntie had already collected all the information to be able to complete these last 3 adjustments. (See excel) You decide to set up a to do list of things that need to be completed. Your hand scribbled jot notes include: 1) Need final adjusted trial balance 2) Ratio results now vs. 2024 vs. 2021? - a. what are the trends? b. are they better or worse over the years and C. WHY? 3) Good business opportunity? (What will you tell your Auntie? ]

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